With reference to the Revenue Expenditure of the Government consider the following statements:

1. The grants given to state governments are treated as revenue expenditure only if none of the grants are used for the creation of capital assets.

2. Revenue Expenditure includes Subsidies forwarded to all sectors by the Government.

3. Interest payment on loans is also a Revenue Expenditure.

Which of the statements given above is/are correct?

1
1, 2 and 3
2
2 only
3
1 and 3 only
4
2 and 3 only

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